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Financial Education Campaigns Gain Traction

Across the country, more states are implementing early education programs to improve the financial savvy of their citizens. These efforts are due in part to the nation’s rising number of bankruptcy filings.

According to the Associated Press, one nationwide financial education campaign has proven to be particularly effective. The Bank on Cities effort has been launched in 25 different cities, and has been so successful that the Obama Administration recently requested $50 million in extra funding for the program.

Some interesting features of the Bank on Cities program are listed below:

• Encourage banking: The goal of the program is to connect low-income people with reasonably priced bank accounts in order to avoid predatory lenders and banking alternatives with abusively high interest rates, like title loan and check cashing services.
• Service coordination: The program, started by the National League of Cities, encourages partnership between banks, local governments, credit unions, and community groups.
• Rapid growth: In addition to the 25 existing programs, 50 more are slated to begin in the coming years.

Tennessee Launches Landmark Program

In addition to the efforts made by national programs like Bank on Cities, individual states have also taken strong steps towards enhancing the overall financial literacy of their residents.

Recently, the Tennessee Financial Literacy Commission responded to the growing costs of higher education by implementing a financial education program for elementary school students. The program will emphasize the value of saving money, particularly with an eye towards college tuition.

As part of the program, the state also plans to compile an online database containing a full menu of financial literacy tools already existing in Tennessee.

Teaching Through Role Play

Another national nonprofit group, led by Junior Achievement, aims to improve financial literacy by placing schoolchildren in adult scenarios.

For example, one group of students will be placed in the shoes of a married couple with children. The students are then asked to manage their household budgets, and make key financial decisions, such as the type of car or house they should purchase, and what type of bank account they should use.

Already, in Tennessee, the nonprofit group serves over 70,000 students.

Why the Emphasis on Financial Education?

Financial education efforts have gained traction nationwide in the aftermath of a deep economic recession. The recession was caused in part by poor economic decisions made by families with little to no financial education.

In order to help future generations avoid catastrophic financial mistakes, both the federal and state governments are investing in financial education programs.

If the recession has made a particularly hard impact on your financial health, consider contacting a personal bankruptcy attorney. It’s never too late to learn more about maintaining financial health.